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Rimier Corp. forecasts sales of $649,000 for 2020. Assume the firm has fixed costs of $254,000 and variable costs amounting to 30% of sales. Operating
Rimier Corp. forecasts sales of $649,000 for 2020. Assume the firm has fixed costs of $254,000 and variable costs amounting to 30% of sales. Operating expenses are estimated to include fixed costs of $30,000 and a variable portion equal to 8.7% of sales. Interest expenses for the coming year are estimated to be $21,000. Estimate Rimier's net profits before taxes for 2020. Compute the estimated net profits before taxes below: (Round to the nearest dollar.) Rimier Corp Pro Forma Income Statement 2020 $ Sales revenue Less: Cost of goods sold Fixed cost $ $ $ Variable cost Gross profits Less: Operating expenses Fixed Expense Variable expenses Operating profits Less: Interest expense (all fixed) Net profits before taxes $ $
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